SPY vs VUG
State Street SPDR S&P 500 ETF Trust vs Vanguard Morningstar Growth ETF
Which is better, SPY or VUG?
Large Cap Blend against Large Cap Growth.
VUG has a lower expense ratio. SPY led over 1Y and 5Y, VUG over 3Y and the full window. The two have moved almost in lockstep, correlation 0.95. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 63.6%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | VUG |
|---|---|---|
| Expense Ratio | 0.09% | 0.03%Best |
| AUM | $804.7B | $219.5B |
| Dividend Yield | 0.98% | 0.38% |
| Holdings | 505 | 146 |
| YTD Return | +10.96%Best | +7.68% |
| 1Y Return | +15.52%Best | +10.35% |
| 3Y Return (annualized) | +20.73% | +23.24%Best |
| 5Y Return (annualized) | +12.53%Best | +11.88% |
| Volatility (annualized) | 14.6%Best | 16.5% |
| Max Drawdown | -56.5% | -51.4%Best |
| $10,000 over 5 years | $18,044Best | $17,529 |
| Top 10 Weight | 37.8%Best | 63.6% |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Jan 22, 1993 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 16, 2026 (22.6 years).
SPY vs VUG growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 22.6 years both funds cover.
SPY vs VUG Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vanguard Morningstar Growth ETF (VUG) is an ETF from Vanguard (US). Over the past year SPY returned +15.52% while VUG returned +10.35%. Year to date, SPY is up 10.96% versus a gain of 7.68% for VUG.
Over three years, SPY compounded at +20.73% per year against +23.24% for VUG; over five years the annualized figures are +12.53% and +11.88% respectively. Across the full 23-year window we track, VUG has the edge at +11.12% annualized vs +9.09%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 14.6% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.5% for SPY and -51.4% for VUG. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SPY charges 0.09% per year while VUG charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 0.38% for VUG.
Holdings Overlap
57.7% of SPY's money is in holdings VUG also owns. 97.5% of VUG's money is in holdings SPY also owns.
Most of VUG is already inside SPY. Owning both mostly buys the same companies twice.
123 positions in common, counted across the 504 positions we hold weights for in SPY and 147 in VUG, against full books of 505 and 146.
What only one of them owns
Our book lists 23 positions for VUG that do not appear in our book for SPY (2.3% of the fund), and 374 for SPY that do not appear in VUG (41.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SPY | Weight in VUG | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.01% | 12.81% | 4.80% |
| AAPLApple, Inc | 7.26% | 12.59% | 5.33% |
| MSFTMicrosoft Corp | 5.66% | 9.59% | 3.93% |
| AMZNAmazon.Com Inc | 3.79% | 5.15% | 1.36% |
| GOOGLAlphabet Inc,class A | 2.99% | 5.80% | 2.81% |
| AVGOBroadcom Inc | 2.66% | 4.46% | 1.80% |
| GOOGAlphabet Inc | 2.39% | 4.62% | 2.23% |
| METAMeta Platforms Inc | 1.93% | 3.41% | 1.48% |
| LLYEli Lilly & Co. | 1.40% | 2.72% | 1.32% |
| TSLATesla Inc | 1.52% | 2.44% | 0.92% |
97.5% of VUG is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or VUG?
SPY has an expense ratio of 0.09% while VUG charges 0.03%. VUG is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, SPY or VUG?
Over the past year SPY returned +15.52% vs +10.35% for VUG, so SPY leads on 1-year performance. Over the longest common window we track (23 years), SPY annualized +9.09% vs +11.12% for VUG. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VUG?
VUG has been the more volatile fund at 16.5% annualized versus 14.6% for SPY. Worst drawdown: SPY -56.5% vs VUG -51.4%.
Should I hold both SPY and VUG?
SPY and VUG have a monthly-return correlation of 0.95, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between SPY and VUG?
97.5% of VUG's money is in holdings SPY also owns. 97.5% of VUG's is in holdings SPY also owns. They hold 123 positions in common, counted across the 504 positions we hold weights for in SPY and 147 in VUG.
Which pays a higher dividend, SPY or VUG?
SPY yields 0.98% while VUG yields 0.38%, so SPY currently pays the higher dividend yield.
Is VUG better than SPY?
VUG has a lower expense ratio. SPY led over 1Y and 5Y, VUG over 3Y and the full window. The two have moved almost in lockstep, correlation 0.95. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 63.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.